Jones Energy, Inc. - 10-K filing on 2017-03-10

Subsidiary Guarantors (Tables)

12 Months Ended

Dec. 31, 2016

December 31, 2016


					Guarantor		Non-Guarantor
(in thousands of dollars)	JEI (Parent)		Issuers		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Assets
Current assets
Cash	$	27,164	$	1,975	$	5,483	$	20	$	—	$	34,642
Accounts receivable, net
Oil and gas sales		—		—		26,568		—		—		26,568
Joint interest owners		—		—		5,267		—		—		5,267
Other		—		5,434		627		—		—		6,061
Commodity derivative assets		—		24,100		—		—		—		24,100
Other current assets		—		422		2,262		—		—		2,684
Intercompany receivable		15,666		1,180,859		—		—		(1,196,525)		—
Total current assets		42,830		1,212,790		40,207		20		(1,196,525)		99,322
Oil and gas properties, net, at cost under the successful efforts method		—		—		1,586,707		156,881		—		1,743,588
Other property, plant and equipment, net		—		—		2,378		618		—		2,996
Commodity derivative assets		—		34,744		—		—		—		34,744
Other assets		—		5,265		785		—		—		6,050
Investment in subsidiaries		531,363		—		—		—		(531,363)		—
Total assets	$	574,193	$	1,252,799	$	1,630,077	$	157,519	$	(1,727,888)	$	1,886,700
Liabilities and Stockholders’ Equity
Current liabilities
Trade accounts payable	$	—	$	13	$	36,514	$	—	$	—	$	36,527
Oil and gas sales payable		—		—		28,339		—		—		28,339
Accrued liabilities		3,874		11,227		10,597		9		—		25,707
Commodity derivative liabilities		—		14,650		—		—		—		14,650
Other current liabilities		—		1,984		600		—		—		2,584
Intercompany payable		—		—		1,410,077		159,660		(1,569,737)		—
Total current liabilities		3,874		27,874		1,486,127		159,669		(1,569,737)		107,807
Long-term debt		—		724,009		—		—		—		724,009
Deferred revenue		—		7,049		—		—		—		7,049
Commodity derivative liabilities		—		1,209		—		—		—		1,209
Asset retirement obligations		—		—		19,441		17		—		19,458
Liability under tax receivable agreement		43,045		—		—		—		—		43,045
Other liabilities		—		269		523		—		—		792
Deferred tax liabilities		85		2,820		—		—		—		2,905
Total liabilities		47,004		763,230		1,506,091		159,686		(1,569,737)		906,274
Mezzanine equity
Series A preferred stock, $0.001 par value; 1,840,000 shares issued and outstanding at December 31, 2016		88,975		—		—		—		—		88,975
Stockholders’/ members' equity
Members' equity		—		489,569		123,986		(2,167)		(611,388)		—
Class A common stock, $0.001 par value; 57,048,076 shares issued and 57,025,474 shares outstanding at December 31, 2016		57		—		—		—		—		57
Class B common stock, $0.001 par value; 29,832,098 shares issued and outstanding at December 31, 2016		30		—		—		—		—		30
Treasury stock, at cost: 22,602 shares at December 31, 2016		(358)		—		—		—		—		(358)
Additional paid-in-capital		447,137		—		—		—		—		447,137
Retained earnings (deficit)		(8,652)		—		—		—		—		(8,652)
Stockholders' equity		438,214		489,569		123,986		(2,167)		(611,388)		438,214
Non-controlling interest		—		—		—		—		453,237		453,237
Total stockholders’ equity		438,214		489,569		123,986		(2,167)		(158,151)		891,451
Total liabilities and stockholders’ equity	$	574,193	$	1,252,799	$	1,630,077	$	157,519	$	(1,727,888)	$	1,886,700

Jones Energy, Inc.

Condensed Consolidating Balance Sheet

December 31, 2015


					Guarantor		Non-Guarantor
(in thousands of dollars)	JEI (Parent)		Issuers		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Assets
Current assets
Cash	$	100	$	12,448	$	9,325	$	20	$	—	$	21,893
Accounts receivable, net
Oil and gas sales		—		—		19,292		—		—		19,292
Joint interest owners		—		—		11,314		—		—		11,314
Other		—		14,444		726		—		—		15,170
Commodity derivative assets		—		124,207		—		—		—		124,207
Other current assets		—		444		1,854		—		—		2,298
Intercompany receivable		12,866		1,161,997		—		—		(1,174,863)		—
Total current assets		12,966		1,313,540		42,511		20		(1,174,863)		194,174
Oil and gas properties, net, at cost under the successful efforts method		—		—		1,635,766		—		—		1,635,766
Other property, plant and equipment, net		—		—		3,168		705		—		3,873
Commodity derivative assets		—		93,302		—		—		—		93,302
Other assets		—		7,456		583		—		—		8,039
Investment in subsidiaries		444,362		—		—		—		(444,362)		—
Total assets	$	457,328	$	1,414,298	$	1,682,028	$	725	$	(1,619,225)	$	1,935,154
Liabilities and Stockholders’ Equity
Current liabilities
Trade accounts payable	$	—	$	388	$	7,079	$	—	$	—	$	7,467
Oil and gas sales payable		—		—		32,408		—		—		32,408
Accrued liabilities		—		15,741		11,270		—		—		27,011
Commodity derivative liabilities		—		11		—		—		—		11
Other current liabilities		—		—		679		—		—		679
Intercompany payable		—		—		1,391,838		2,434		(1,394,272)		—
Total current liabilities		—		16,140		1,443,274		2,434		(1,394,272)		67,576
Long-term debt		—		837,654		—		—		—		837,654
Deferred revenue		—		11,417		—		—		—		11,417
Asset retirement obligations		—		—		20,301		—		—		20,301
Liability under tax receivable agreement		38,052		—		—		—		—		38,052
Other liabilities		—		—		330		—		—		330
Deferred tax liabilities		19,280		3,692		—		—		—		22,972
Total liabilities		57,332		868,903		1,463,905		2,434		(1,394,272)		998,302
Stockholders’/ members' equity
Members' equity		—		545,395		218,123		(1,709)		(761,809)		—
Class A common stock, $0.001 par value; 30,573,509 shares issued and 30,550,907 shares outstanding at December 31, 2015		31		—		—		—		—		31
Class B common stock, $0.001 par value; 31,273,130 shares issued and outstanding at December 31, 2015		31		—		—		—		—		31
Treasury stock, at cost: 22,602 shares at December 31, 2015		(358)		—		—		—		—		(358)
Additional paid-in-capital		363,723		—		—		—		—		363,723
Retained earnings (deficit)		36,569		—		—		—		—		36,569
Stockholders' equity		399,996		545,395		218,123		(1,709)		(761,809)		399,996
Non-controlling interest		—		—		—		—		536,856		536,856
Total stockholders’ equity		399,996		545,395		218,123		(1,709)		(224,953)		936,852
Total liabilities and stockholders’ equity	$	457,328	$	1,414,298	$	1,682,028	$	725	$	(1,619,225)	$	1,935,154

Condensed Consolidating Statement of Operations

Year Ended December 31, 2016


					Guarantor		Non-Guarantor
(in thousands of dollars)	JEI (Parent)		Issuers		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Operating revenues
Oil and gas sales	$	—	$	—	$	124,861	$	16	$	—	$	124,877
Other revenues		—		2,384		586		—		—		2,970
Total operating revenues		—		2,384		125,447		16		—		127,847
Operating costs and expenses
Lease operating		—		—		32,633		7		—		32,640
Production and ad valorem taxes		—		—		7,768		—		—		7,768
Exploration		—		—		6,673		—		—		6,673
Depletion, depreciation and amortization		—		—		153,831		99		—		153,930
Accretion of ARO liability		—		—		1,263		—		—		1,263
General and administrative		—		12,028		17,244		368		—		29,640
Other operating		—		—		199		—		—		199
Total operating expenses		—		12,028		219,611		474		—		232,113
Operating income (loss)		—		(9,644)		(94,164)		(458)		—		(104,266)
Other income (expense)
Interest expense		—		(53,080)		(47)		—		—		(53,127)
Gain on debt extinguishment		—		99,530		—		—		—		99,530
Net gain (loss) on commodity derivatives		—		(51,264)		—		—		—		(51,264)
Other income (expense)		784		(321)		73		—		—		536
Other income (expense), net		784		(5,135)		26		—		—		(4,325)
Income (loss) before income tax		784		(14,779)		(94,138)		(458)		—		(108,591)
Equity interest in income		(66,804)		—		—		—		66,804		—
Income tax provision (benefit)		(23,468)		(318)		—		—		—		(23,786)
Net income (loss)		(42,552)		(14,461)		(94,138)		(458)		66,804		(84,805)
Net income (loss) attributable to non-controlling interests		—		—		—		—		(42,253)		(42,253)
Net income (loss) attributable to controlling interests	$	(42,552)	$	—	$	—	$	—	$	—	$	(42,552)
Dividends and accretion on preferred stock		(2,669)		—		—		—		—		(2,669)
Net income (loss) attributable to common shareholders	$	(45,221)	$	—	$	—	$	—	$	—	$	(45,221)

Jones Energy, Inc.

Condensed Consolidating Statement of Operations

Year Ended December 31, 2015


					Guarantor		Non-Guarantor
(in thousands of dollars)	JEI (Parent)		Issuers		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Operating revenues
Oil and gas sales	$	—	$	—	$	194,555	$	—	$	—	$	194,555
Other revenues		—		1,960		884		—		—		2,844
Total operating revenues		—		1,960		195,439		—		—		197,399
Operating costs and expenses
Lease operating		—		—		41,027		—		—		41,027
Production and ad valorem taxes		—		—		12,130		—		—		12,130
Exploration		—		—		6,551		—		—		6,551
Depletion, depreciation and amortization		—		—		205,407		91		—		205,498
Accretion of ARO liability		—		—		1,087		—		—		1,087
General and administrative		—		13,565		19,707		116		—		33,388
Other operating				—		4,188		—				4,188
Total operating expenses		—		13,565		290,097		207		—		303,869
Operating income (loss)		—		(11,605)		(94,658)		(207)		—		(106,470)
Other income (expense)
Interest expense		—		(63,160)		(1,298)		—		—		(64,458)
Net gain (loss) on commodity derivatives		—		158,753		—		—		—		158,753
Other income (expense)		1,984		(1,663)		(4)		—		—		317
Other income (expense), net		1,984		93,930		(1,302)		—		—		94,612
Income (loss) before income tax		1,984		82,325		(95,960)		(207)		—		(11,858)
Equity interest in income		(4,728)		—		—		—		4,728		—
Income tax provision (benefit)		(363)		(2,418)		—		—		—		(2,781)
Net income (loss)		(2,381)		84,743		(95,960)		(207)		4,728		(9,077)
Net income (loss) attributable to non-controlling interests		—		—		—		—		(6,696)		(6,696)
Net income (loss) attributable to controlling interests	$	(2,381)	$	—	$	—	$	—	$	—	$	(2,381)

Jones Energy, Inc.

Condensed Consolidating Statement of Operations

Year Ended December 31, 2014


					Guarantor		Non-Guarantor
(in thousands of dollars)	JEI (Parent)		Issuers		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Operating revenues
Oil and gas sales	$	—	$	—	$	378,401	$	—	$	—	$	378,401
Other revenues		—		1,154		1,042		—		—		2,196
Total operating revenues		—		1,154		379,443		—		—		380,597
Operating costs and expenses
Lease operating		—		—		37,760		—		—		37,760
Production and ad valorem taxes		—		—		22,556		—		—		22,556
Exploration		—		—		3,453		—		—		3,453
Depletion, depreciation and amortization		—		—		181,578		91		—		181,669
Accretion of ARO liability		—		—		770		—		—		770
General and administrative		—		4,493		21,181		89		—		25,763
Total operating expenses		—		4,493		267,298		180		—		271,971
Operating income (loss)		—		(3,339)		112,145		(180)		—		108,626
Other income (expense)
Interest expense		—		(40,365)		(1,510)		—		—		(41,875)
Net gain (loss) on commodity derivatives		—		189,641		—		—		—		189,641
Other income (expense)		—		(4,851)		297		—		—		(4,554)
Other income (expense), net		—		144,425		(1,213)		—		—		143,212
Income (loss) before income tax		—		141,086		110,932		(180)		—		251,838
Equity interest in income		63,197		—		—		—		(63,197)		—
Income tax provision (benefit)		22,061		4,157		—		—		—		26,218
Net income (loss)		41,136		136,929		110,932		(180)		(63,197)		225,620
Net income (loss) attributable to non-controlling interests		—		—		—		—		184,484		184,484
Net income (loss) attributable to controlling interests	$	41,136	$	—	$	—	$	—	$	—	$	41,136

Condensed Consolidating Statement of Cash Flows

Year Ended December 31, 2016


					Guarantor		Non-Guarantor
(in thousands of dollars)	JEI (Parent)		Issuers		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Cash flows from operating activities
Net income (loss)	$	(42,552)	$	(14,461)	$	(94,138)	$	(458)	$	66,804	$	(84,805)
Adjustments to reconcile net income (loss) to net cash provided by operating activities		(105,877)		(70,695)		196,547		157,334		(66,804)		110,505
Net cash (used in) / provided by operations		(148,429)		(85,156)		102,409		156,876		—		25,700
Cash flows from investing activities
Additions to oil and gas properties		—		—		(107,586)		(156,876)		—		(264,462)
Proceeds from sales of assets		—		—		1,645		—		—		1,645
Acquisition of other property, plant and equipment		—		—		(310)		—		—		(310)
Current period settlements of matured derivative contracts		—		132,265		—		—		—		132,265
Net cash (used in) / provided by investing		—		132,265		(106,251)		(156,876)		—		(130,862)
Cash flows from financing activities
Proceeds from issuance of long-term debt		—		130,000		—		—		—		130,000
Repayment under long-term debt		—		(62,000)		—		—		—		(62,000)
Purchase of senior notes		—		(84,589)		—		—		—		(84,589)
Payment of dividends on preferred stock		(1,615)		—		—		—		—		(1,615)
Net distributions paid to JEH unitholders		23,674		(40,993)		—		—		—		(17,319)
Proceeds from sale of common stock		65,446		—		—		—		—		65,446
Proceeds from sale of preferred stock		87,988		—		—		—		—		87,988
Net cash (used in) / provided by financing		175,493		(57,582)		—		—		—		117,911
Net increase (decrease) in cash		27,064		(10,473)		(3,842)		—		—		12,749
Cash
Beginning of period		100		12,448		9,325		20		—		21,893
End of period	$	27,164	$	1,975	$	5,483	$	20	$	—	$	34,642

Jones Energy, Inc.

Condensed Consolidating Statement of Cash Flows

Year Ended December 31, 2015


					Guarantor		Non-Guarantor
(in thousands of dollars)	JEI (Parent)		Issuers		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Cash flows from operating activities
Net income (loss)	$	(2,381)	$	84,743	$	(95,960)	$	(207)	$	4,728	$	(9,077)
Adjustments to reconcile net income (loss) to net cash provided by operating activities		(120,398)		(202,359)		405,214		197		(4,728)		77,926
Net cash (used in) / provided by operations		(122,779)		(117,616)		309,254		(10)		—		68,849
Cash flows from investing activities
Additions to oil and gas properties		—		—		(311,305)		—		—		(311,305)
Proceeds from sales of assets		—		—		41		—		—		41
Acquisition of other property, plant and equipment		—		—		(1,101)		—		—		(1,101)
Current period settlements of matured derivative contracts		—		144,145				—		—		144,145
Net cash (used in) / provided by investing		—		144,145		(312,365)		—		—		(168,220)
Cash flows from financing activities
Proceeds from issuance of long-term debt		—		85,000		—		—		—		85,000
Repayment under long-term debt		—		(335,000)		—		—		—		(335,000)
Proceeds from senior notes		—		236,475		—		—		—		236,475
Payment of debt issuance costs		—		(1,556)		—		—		—		(1,556)
Proceeds from sale of common stock, net of expense		122,779		—		—		—		—		122,779
Net cash (used in) / provided by financing		122,779		(15,081)		—		—		—		107,698
Net increase (decrease) in cash		—		11,448		(3,111)		(10)		—		8,327
Cash												—
Beginning of period		100		1,000		12,436		30		—		13,566
End of period	$	100	$	12,448	$	9,325	$	20	$	—	$	21,893

Jones Energy, Inc.

Condensed Consolidating Statement of Cash Flows

Year Ended December 31, 2014


							Non-
					Guarantor		Guarantor
(in thousands of dollars)	JEI (Parent)		Issuers		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Cash flows from operating activities
Net income (loss)	$	41,136	$	136,929	$	110,932	$	(180)	$	(63,197)	$	225,620
Adjustments to reconcile net income (loss) to net cash provided by operating activities		(40,778)		(326,859)		343,999		140		63,197		39,699
Net cash (used in) / provided by operations		358		(189,930)		454,931		(40)		—		265,319
Cash flows from investing activities
Additions to oil and gas properties		—		—		(474,619)		—		—		(474,619)
Net adjustments to purchase price of properties acquired		—		—		15,709		—		—		15,709
Proceeds from sales of assets		—		—		448		—		—		448
Acquisition of other property, plant and equipment		—		—		(1,683)		—		—		(1,683)
Current period settlements of matured derivative contracts		—		(3,654)		—		—		—		(3,654)
Net cash (used in) / provided by investing		—		(3,654)		(460,145)		—		—		(463,799)
Cash flows from financing activities
Proceeds from issuance of long-term debt		—		170,000		—		—		—		170,000
Repayment under long-term debt		—		(468,000)		—		—		—		(468,000)
Proceeds from senior notes		—		500,000		—		—		—		500,000
Payment of debt issuance costs		—		(13,416)		—		—		—		(13,416)
Purchases of treasury stock		(358)		—		—		—		—		(358)
Net cash (used in) / provided by financing		(358)		188,584		—		—		—		188,226
Net increase (decrease) in cash		—		(5,000)		(5,214)		(40)		—		(10,254)
Cash
Beginning of period		100		6,000		17,650		70		—		23,820
End of period	$	100	$	1,000	$	12,436	$	30	$	—	$	13,566